The Institutional Limited Partners Association has supported a new initiative from the Private Capital Research Institution to spread education about private capital investing.
The PCRI will build a global private capital database to be stored at an academic institution, from which academics can gain access after submitting proposals, according to a PCRI statement. Led by Harvard Business School professor Josh Lerner, the PCRI will collaborate with The Brookings Institute to analyse and share its findings with industry players, policymakers and the general public.
“Obtaining better information about private equity and venture capital performance, and how successful private equity groups work, wil not be just academic interest, but also help limited partners make better investment decisions and lead to a healthier industry more generally,” Lerner said. Restricted access to databases and discrepancies across different databases have posed challenges for producing verifiable research, Lerner added.
“With more data and reports being generated on the subject, it will provide the opportunity for that [knowledge] gap to diminish,” executive director of ILPA Kathy Jeramaz-Larson told Private Equity International. The database would also help enhance the long-term sustainability of the private equity asset class, she added.
“We support transparency in the asset class between institutional investors and general partners, and for the most part, both groups are data oriented,” she said.
ILPA’s Private Equity Principles have been endorsed by more than 140 organisations globally since being introduced in September 2009. The organisations include public and corporate pension funds, sovereign wealth funds, endowments, foundations, family offices and a number of private equity investment firms and advisory firms.